Health and wellness products company Herbalife (NYSE: HLF) will be reporting earnings this Wednesday afternoon. Here’s what investors should know.
Herbalife missed analysts’ revenue expectations by 1% last quarter, reporting revenues of $1.26 billion, down 1.7% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but a significant miss of analysts’ gross margin estimates.
Is Herbalife a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Herbalife’s revenue to grow 2.2% year on year to $1.27 billion, a reversal from the 3.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.46 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Herbalife has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Herbalife’s peers in the personal care segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Estée Lauder delivered year-on-year revenue growth of 3.5%, beating analysts’ expectations by 2.9%, and Medifast reported a revenue decline of 36.2%, in line with consensus estimates. Estée Lauder’s stock price was unchanged following the results.
Read our full analysis of Estée Lauder’s results here and Medifast’s results here.
The euphoria surrounding Trump’s November win lit a fire under major indices, but potential tariffs have caused the market to do a 180 in 2025. While some of the personal care stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 6.3% on average over the last month. Herbalife is down 10.1% during the same time and is heading into earnings with an average analyst price target of $9.33 (compared to the current share price of $7.90).
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